Following on from last month’s blog, we continue to look into the bigger repercussions that could potentially take place after Britain’s departure from the EU.
What will happen to domestic transport legislation?
Depending on the deal negotiated with the EU, the Government may well decide to revise various aspects of the UK transport legislation which is based on EU directives and regulations. Most likely looking at what would be kept and what would be scrapped. For example, will international hauliers have to learn two set of rules, one for when their trucks are in the UK and another for when they are in the EU?
With regard to tariffs, guarantees and clearance procedures needing to be followed, will relate directly to the access the UK will have to the Single Market.
What about global imports and exports?
As the UK’s current global trade deals have been negotiated by the EU, for EU members, the UK ill now need to negotiate new trade deals with the rest of the world to ensure that it can keep trading under favourable conditions.
Post-Brexit, it will be more important than ever for the UK to trade more with the rest of the world but changes in the container shipping market mean that the biggest and most efficient container ships are calling less frequently at UK ports, meaning goods having to be trans-shipped from mainland Europe. This means there is a case here for more investment in our ports and the road and rail links that connect them to increase their ability to handle bigger ships and larger volumes of containers.
Those who are currently engaged in international European and global supply chains will feel the effects of any new changes first. However, again much will rely on the conditions for UK access to the Single Market.
Looking forward the UK has well-developed organisations governing the transport sector, and we do have well-developed market liberalisation compared to other member states.
The UK will no doubt continue to be a centre of excellence for shipping services. It’s just how attractive will it be for foreign investors that remains unclear. And unfortunately we won’t know for some time what the real affects will be.